Green finance is rapidly becoming an essential tool in achieving sustainability objectives by harmonizing economic development with ecological concerns. However, implementing green finance initiatives remains complex because of various barriers such as regulatory issues, inadequate awareness, financial constraints, and institutional weaknesses. In this paper, the methodology adopted is that of using Interpretive Structural Modeling (ISM) and MICMAC analysis to systematically determine, rank, and categorize the barriers to green financing in India. Fourteen barriers were derived from prior research and expert opinions, encompassing factors such as regulation and governance, lack of awareness, financial literacy, political constraints, and the perception of high risk and low return. The ISM framework helped establish hierarchical relationships among these barriers, while MICMAC analysis categorized them based on their driving and dependence power. The findings highlight key factors, such as time constraints and complexity, and the lack of a reliable information database, which significantly impact additional impediments. This study provides practical recommendations for policymakers and financial institutions to mitigate principal challenges and successfully push forward green financing initiatives.